Complicated tax system makes reform difficult

Although Canada has a comparatively small population of about 36 million, it has complex tax structure, based on a federal system and 13 provincial and territorial independent legislatures, each with their own political and economic goals. We talk about tax reform, but do little to achieve it. The taxation of corporate business income is a favourite for such discussions and annual rate changes, as we saw with the latest Liberal budget.

The taxation of corporate business income depends upon three principal factors: